Entry Commodity Trading Order in Commodity Trading and Limit Commodity Trading Order in Commodity Trading
Limit order definition - Entry limit is an order to buy or sell a Commodity Trading at a certain commodity price which is a retracement level where commodity price is predicted to pull-back to before resuming the original Commodity Trading trend. Commodity traders use them to buy or sell at better market price. These types of orders are available in most of trading softwares, for our example we will be using MT4 commodity trading software.
An entry of this type can be used to buy below the commodities trading market level (up commodity trend market retracement) or sell above the commodities trading market level (down commodity trend commodity market retracement).
Buy limit - When buying, your entry buy limit is executed when the commodities trading market falls to your set commodity price. ( retraces downwards )
Sell limit - When selling, your entry sell limit is executed when the commodities trading market rises to your set commodity price. (retraces up)
Entry orders are placed by traders when they expect commodity price to bounce back after reaching this zone.
- Entry Buy Limit Commodity Trading Orderbuy at a level below the current market level.
- Entry Sell Limit Commodity Trading Ordersell at a level above the current market level.
Buy Entry Limit Example
In the commodities trading example illustrated and shown below, the buy limit pending order was placed to buy at a commodity price below the current market commodity price. Chart Point B is point at which it was set.
Limit buy order entry placed to buy below current market commodity price
The commodity price then retraced and went down to hit buy entry limit, and afterwards commodity price continued to move upward in direction of the original Commodity upward trend. When limit buy order was hit it changed in to a buy.
Commodity Trading Price hits buy limit, order now changes to a buy
Sell Entry Limit Commodity Trading Order
In the commodities trading example illustrated and shown below a the sell entry limit was placed to sell at a commodity price above the current market commodity price. This is the level for the commodity price retracement.
Entry limit sell order placed to sell above the current market commodity price
The commodity price then rallied, went up to hit sell entry limit, and afterwards commodity price continued to move downward in direction of the original Commodities Trading downward trend.
Commodity Trading Price hits sell limit, order now changes to a sell
When commodity trading quote got to the set level the trading order changed in to a sell, this is therefore a nice technique to buy or sell at a better commodity price after a retracement.
Setting Buy and Sell Limit Commodities Orders in MT4 Platform
To set up these commodity orders in MetaTrader 4 software, Right-click on Commodity Trading chart>>> Select 'Trading">>> Then Select "New'>>> Then on the window pop up that appears (illustrated and shown below), under label "Type" select option of "pending" instead of "market execution">>> Under the pending commodities trading order options select the pending commodities order type: For This trade choose and select either 'Buy Limit Commodity Trading Order' or 'Sell Limit Commodity Trading Order" depending on whether you want to place a pending buy or sell.
Setting Buy & Sell Limit Commodities Trading Orders on MetaTrader 4 Software
Sometimes, setting the point value to place your trade can be tricky, setting to far might mean your entry market limit not getting executed, the best tool to use is Fibo retracement indicator and use the 38.20% retracement levels. This retracement level is watched by many traders and entry orders tend to crowd at this level, therefore the best odds to catch a trade would be presented by using the 38.2% Fibo retracement level.
Fibonacci Retracement Tutorial - Commodity Trading Fib Retracement Guide
Tip: In Commodity Trading online trading, If you want to set a good take profit level (not retracement level, take profit level) for your trades you can use the Fibonacci expansion 100% level for the best take profit area. To Read more on Commodities Trading Fib Retracement and Fibonacci expansion use the right navigation menu section Technical Analysis.
Commodity Trading Fibonacci Expansion Tool Tutorial - Commodity Fibonacci Expansion Tool Tutorial
